The Bank of England and Financial Services Bill is currently making its way through the upper house. On Tuesday, its second reading was introduced by Cabinet Office minister Lord Bridges.
Today, Tuesday 26th May 2015, campaigners and politicians will deliver a 12,000-strong petition urging the Prime Minister to change the way in which money is created, so that it serves the public interest. A group including Green Party leader Natalie Bennett will deliver the petition at 4.30pm this afternoon. The petition calls for new money to be “used to fund vital public services or provide finance to businesses, creating jobs where they're needed, instead of being used to push up house prices or speculate on the financial markets”. This call for “Sovereign Money creation” has been echoed by leading economists including Lord Adair Turner and Martin Wolf of the Financial Times.Positive Money is a research and campaigning organisation that seeks to highlight dysfunction in the money system and the need for reform. A Dods Monitoring poll conducted last year showed that only 1 in 10 MPs have an accurate understanding of how money is created. Positive Money claims that without an understanding of how the monetary system works, policy makers and politicians are unable to guard against another financial crisis. A cross-party group of MPs have been invited to join supporters in handing over the petition. At a backbench debate on money creation and society last year, MPs from both sides of the House called for a money commission to consider alternatives to our current fractional reserve banking system. During the debate, Conservative MP Zac Goldsmith said,
The Conservatives are in office for another five years with a long term plan to deliver a prosperous and more balanced economy. But with the mounting burden of household debt set to grow even further, we could be in for a bumpy ride.